Maxime Bernier - EQUALIZATION: Fairness For All Provinces

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Provinces should not be receiving equalization payments for decades, just like individuals should not be receiving welfare cheques all their lives. It’s time to stop rewarding provincial governments for not adopting better economic policies.

The Constitution does not commit the federal government to spend $21 billion a year on equalization; does not prescribe any specific formula; and does not define what “reasonably comparable” means.

A People’s Party government will:
Reduce the total amount of equalization payments to provinces, and make sure that only the provinces with the greatest needs benefit from it.
Establish a parliamentary committee to review and make recommendations on a new formula that will avoid the welfare trap and provide poorer provinces with the right incentives to adopt pro-growth economic policies and reduce their dependence on federal money.
Ensure that the new formula respects our Constitution, makes provincial governments more responsible for their policy decisions, and is fair for citizens of all provinces.